Johnson & Johnson Agrees To $700 Million Settlement in Talc-Based Products Marketing Probe: Report
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Johnson & Johnson has reportedly agreed to pay approximately $700 million to settle claims with over 40 states that allege the company wrongfully marketed its talc-based products without adequate warning about associated health risks, according to a report published by Bloomberg.
While the company’s legal team is still working out details with the state attorney’s general, they have reached an agreement on the amount, according to Bloomberg, which used unnamed sources with knowledge of the agreement.
The settlement would aim to prevent additional lawsuits that allege Johnson & Johnson knew about and failed to disclose links between its talc products and cancer.
Johnson & Johnson’s legal troubles stem from decade-long litigation and thousands of lawsuits that claim the company hid health risks associated with its baby powder and other talcum powder products.
Currently, the company is facing upward of 54,000 talc-related lawsuits in a New Jersey MDL. Women who claim Johnson & Johnson’s talc baby powder caused them to develop ovarian cancer filed many of the suits. Other plaintiffs allege they developed mesothelioma because of asbestos contamination in the talc.
States Investigating Johnson & Johnson’s Practices
Several state attorneys general have requested more information from Johnson & Johnson about how it marketed the products, according to a filing with the U.S. Securities and Exchange Commission.
“Forty-two states and the District of Columbia (including Mississippi and New Mexico) have commenced a joint investigation into the company’s marketing of its talcum powder products,” the filing states. “At this time, the multi-state group has not asserted any claims against the company. Five states have issued Civil Investigative Demands seeking documents and other information. The company has produced documents to Arizona, North Carolina, Texas and Washington and entered into confidentiality agreements.”
New Offer Latest in Johnson & Johnson Effort To Settle
Johnson & Johnson twice filed — and twice failed — bankruptcy attempts last year in an ongoing effort to settle its financial liabilities in talc-related cases.
Johnson & Johnson attempted what is known as a Texas Two-Step maneuver in which it shifts all legal cases to a subsidiary and then declares bankruptcy. The judge who oversaw the case denied the filing, stating the company was not in financial trouble and could not go through with the bankruptcy.
The rejected bankruptcy filing offered to settle all current and future lawsuits against Johnson & Johnson for $8.9 billion.
If approved, this new settlement is not likely to have an impact on any outstanding individual cases against the company but could offer it a level of protection against future legal action.